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Nick says: 19 February 2016 at 9:05 A second provisional tax payment should be made end of Feb of each year. Why would SARS effectively require individuals to submit a tax return before the last day of the financial year (28 Feb) when business related expenses and income might still happen? Apart from wanting to know why this implementation, I also want to know how does the differences gets eventually settled when you do still have income or expences after you have filed late in Feb? |
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TaxTim says: 19 February 2016 at 18:01 We cannot tell you why SARS has implemented this, but effectively if income and expenses still accrue after that date then these will only be cash differences. Income and Expenses are recorded when you are due the income ie when you have earned it or when the expense becomes payable, ie you have received the invoice for services rendered. Essentially you will know these by the last day of the month so you will be able to estimate almost exactly what the final totals are. When you file your final tax return up to a year later, so the ITR14 which is the company tax return then you will settle the differences if there are any. |
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Nick says: 25 February 2016 at 16:34 I am not operating as a business. I am an individual IRP6 provisional filer as I am working for myself. For various reasons, I am getting intermittent funds deposited to my bank account and I am likely to receive an unknown deposit on 29-Feb (which is the deadline for filing). I am planning to file tomorrow (26-Feb) Does this mean my only way to correct any additional income arriving 26-Feb is to file a third IRP6 end of September? What happens if the business I run as an individual urgently requires me to make a large payment 26-29 Feb? How do I now claim this as a tax deductible expense? |
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TaxTim says: 25 February 2016 at 23:06 The idea is that you need to estimate your income for the period. However if you then suddenly have more income after filing the tax return tomorrow then you will need to to a top up payment for a third IRP6 for the difference. |
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Nick says: 26 February 2016 at 11:21 My second part of my question is still unanswered... Any further expenses after filing an IRP6 in Feb - does this also get declared in IRP6 #3 in Sept and will I get a refund from SARS after this submission? (assuming no further income needs declaration, only additional expences) |
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TaxTim says: 26 February 2016 at 14:45 Your IRP6 in September will contain the final expected taxable income which takes into account the very late expenses. You only receive a refund when you file your final ITR12 for the tax year which you have until January to do so. If you have then overpaid based on your final assessment then you will receive a refund. |
